RMBS

Fitch Ratings has lowered Washington Mutual Covered Bond Program's outstanding €4 billion mortgage covered bonds to 'AA-' from 'AA' and placed them on Rating Watch Negative.

Assured Guaranty posted a small profit for the first quarter of 2012 and on Thursday announced a deal with Deutsche Bank over soured MBS.

The government controlled Ally Financial Monday morning said its board has voted to place Residential Capital into Chapter 11 bankruptcy protection while it finalizes a deal to sell substantially all of its assets to Nationstar Mortgage for $4 billion.

Third-party review firm Allonhill has responded to a letter from the Office of the Comptroller of the Currency (OCC) telling the firm that it will no longer be able to continue its file review in the Independent Foreclosure Review.

MBIA lost more than a half billion dollars in the 1Q12. The company’s adjusted pre-tax loss was $548 million in the quarter, compared to a $25 million profit in the first quarter of 2011. Its adjusted book value slipped to $32 a share from $34.50.

The Office of the Comptroller of the Currency (OCC) has dismissed one of the consultants overseeing a massive foreclosure review after it discovered a conflict of interest in outside work the company has performed.

On Thursday Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA) introduced a new legislation called Responsible Homeowner Refinancing Act of 2012, which aims to further take out the barriers to refinancing through the Home Affordable Refinance Program (HARP).

Ally Financial has been reportedly working on plans for a pre-packaged Chapter 11 bankruptcy filing for its troubled Residential Capital (ResCap) unit.

Flows this week moved down in coupon as investors added duration on the strong flight-to-safety bid. They also responded to faster-than-expected Home Affordable Refinance Program (HARP) refinancing activity in April.